MB
= 300
−
10Q, while in Port

Question

In Stony Brook, the marginal benefit associated with pollution cleanup is MB = 300 − 10Q, while in Port

Jefferson, the marginal benefit associated with pollution cleanup is MB = 200 − 4Q.

Suppose that the marginal cost of cleanup is constant at $12 per unit.

What is the optimal level of pollution cleanup in each of the two regions?

Economics